thoughts:
I don't think it makes sense for Sanji to reject the raid suit after Oda's already decided to give him vinsmoke powers, and when Oda already hinted at the suit getting a re-design by franky later on.
Hell memories was stated to be sanji's ultimate move back in fishman island. So what I think Oda is doing here is having sanji go all out against Queen. Now, if HM fails to take out Queen, sanji will be forced to swallow his pride and embrace the fact that he is a vinsmoke, even if he doesn't ideologically agree with germa 66.
As for the suit breaking, I don't know what sanji did to it as we don't have the raws, but if sanji merely kicked it or crushed it, it could still work as we know the suit is extremely durable. We also know that the suit transforms, so merely crushing it shouldn't be enough to destroy it.